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The idea of a Scandinavian or Nordic model in public policy has a long history. Scholars usually trace the idea to a book “Sweden: TheMiddleWay”writtenby journalistMarquis Childs in the 1930s. Childs argued that the Swedish system, which combined private ownership of most productive assets with a generous welfare state and relative labor peace, lay somewhere between and was arguably preferable to American-style capitalism, on the one hand, and a Soviet-style socialism, on the other hand. Numerous authors have picked up on similar themes over the years, frequently expanding the analysis to include Denmark, Norway, Finland, and sometimes Iceland as well, and increasingly citing social and cultural policy – environmentalism, women’s rights, and an innovative, can-do spirit – as well as the more traditional economic aspects. A recent book, “The Nordic Theory of Everything” (Partanen (2016)), takes the analysis a step further, arguing that Finland and its neighbors are superior to other countries (especially the United States) in virtually every way. Taxes, and tax policy, fit uneasily into these accolades. Nordic taxes are high, and most people do not like high taxes. Yet the argument has beenmade that Nordic tax systems are actually better than those in other countries for one of the several reasons: because they are not as high as they first appear, because they pay for benefits that exceed their cost, or because they are administered in such a fair and painless way that people actually enjoy paying them. These arguments are not mutually exclusive, but rather complementary in nature, and they appear to have convinced many people, although perhaps more so outside the Nordic countries than within them.

The Nordic model of taxation and its influence in North America: Image and Reality